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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C.
Litigation Release No. 15158 / November 14, 1996
SECURITIES AND EXCHANGE COMMISSION v. RICHARD BECKWITT, Civil
Action No. 96-2590 (JLG) (D.D.C. November 14, 1996)
The Securities and Exchange Commission ("Commission")
announced today the filing of a complaint in the United States
District Court for the District of Columbia against Richard
Beckwitt for insider trading in connection with his purchase of
the common stock of Purolator Products Company ("Purolator").
Without admitting or denying any of the allegations in the
complaint, except as to jurisdiction, Beckwitt consented to the
entry of a final judgment enjoining him from violating Sections
10(b) and 14(e) of the Securities Exchange Act of 1934 ("Exchange
Act") and Exchange Act Rules 10b-5 and 14e-3, ordering him to
disgorge $24,492, plus prejudgment interest thereon of $4,556.98,
and ordering him to pay a civil penalty of $24,492.
According to the complaint, Beckwitt purchased 3,500 shares
of Purolator stock on September 23, 1994, ten days before the
October 3, 1994 announcement that Mark IV Industries, Inc. ("Mark
IV") intended to acquire Purolator by means of a tender offer.
The complaint also alleges that a friend of Beckwitt was employed
by an advisor retained by Purolator and that the friend, at all
relevant times, possessed material, nonpublic information
concerning the Purolator/Mark IV transaction. The complaint
further alleges that Beckwitt purchased the stock while in
possession of material, nonpublic information concerning the
negotiations between Purolator and Mark IV that Beckwitt had
obtained from his friend, in breach of a duty of trust and
confidence. Beckwitt sold all 3,500 shares on October 4, 1994,
realizing profits of $24,492.
The Commission acknowledges the assistance of the National
Association of Securities Dealers, Inc. in this matter.